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F I S C A L I M P A C T R E P O R T

SPONSOR Salazar

DATE TYPED 1/31/05 HB 526

SHORT TITLE Alzheimer’s Disease Services

SB

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained

Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

$210.1

Recurring General Fund

SOURCES OF INFORMATION

LFC Files

Responses Received From

Aging and Long-Term Services Department (ALTSD)

Department of Health (DOH)

SUMMARY

Synopsis of Bill

House Bill 526 appropriates $210,100 from the general fund to the ALTSD for respite services,

training for caregivers and electronic devices to monitor individuals with Alzheimer’s disease, or

other related dementias, for the following purposes:

•

$100,500 to establish a rural, mobile daycare and respite program.

•

$10,100 to implement a crisis respite and rural voucher program.

•

$39,500 to provide staff training in residential care facilities, home health care agencies,

community-based daycare and respite programs and emergency services personnel.

•

$60,000 to expand “project lifesaver” in sheriff’s departments statewide. Includes fitting

a participant with a bracelet similar to a watch which emits a signal that can be tracked.

Significant Issues

The Department of Health believes HB 526 would help provide the necessary information, sup-

port and services to the 32,000 New Mexicans who suffer from Alzheimer’s or other dementias

and their families and caregivers.

House Bill 526 -- Page 2

PERFORMANCE IMPLICATIONS

Additional performance measures could be added to help reflect expanded statutory responsibili-

ties under the acquisition of the Long-Term Care Services Program.

FISCAL IMPLICATIONS

The appropriation of $210,100 contained in this bill is a recurring expense to the general fund.

Any unexpended or unencumbered balance remaining at the end of FY06 shall revert to the gen-

eral fund.

The Executive Budget Recommendation recommends supporting Alzheimer’s respite and adult

day care services with a $500 thousand federal AOA demonstration grant administered through

the ALTSD.

The ALTSD was recently awarded $311.0 from the US Administration of Aging’s Alzheimer’s

Disease Demonstration Grants to States Project. Funds will be used to enhance and expand cur-

rent service delivery for individuals with Alzheimer’s disease and related dementia, particularly

in underserved rural areas and tribal communities. This will include respite care services, and

regional caregiver support services.

ADMINISTRATIVE IMPLICATIONS

The Long-Term Care Services Program was transferred to ALTSD in FY05. The Long-Term

Care Program encompasses functions new to the department, the home and community-based

long-term care programs previously administered by DOH and HSD. The purpose of the long-

term services program is to administer home and community-based long-term service programs

that support individuals in the least restrictive environment possible.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

HB 526 relates to HB 167, Statewide Senior Citizens Programs, which proposes an appropriation

to the ALTSD for multiple items, including, in item (4), $520,792 for provision of information,

assistance, education and respite services to individuals with Alzheimer’s disease or related dis-

orders and their families or caregivers.

OTHER SUBSTANTIVE ISSUES

Alzheimer’s disease, and related dementias, is a slow, progressive and degenerative disease in

which brain cells die and are not replaced. The disease impairs judgment, memory, thinking, and

behavior, eventually resulting in the loss of intellectual and physical functioning. Alzheimer’s

disease, and related dementias, can cause a person to exhibit unusual and unpredictable behav-

iors that challenge caregivers, including severe mood swings, verbal or physical aggression,

combativeness, repetition of words, and wandering. These behavioral changes can lead to frus-

tration and tension, for both people with Alzheimer's and their caregivers.

According to the DOH, the Alzheimer’s caregiver is often called the hidden or second victim of

the disease. Stress is a serious problem that, if not recognized and managed, can affect the health

of Alzheimer caregiver. Recent studies indicate that 80% of Alzheimer caregivers suffer from

House Bill 526 -- Page 3

high levels of stress, and nearly half suffer from depression. Caregivers often don't recognize

their own needs, fail to do anything about them, or simply do not know where to turn for help.

Persons isolated in rural areas may be particularly vulnerable to this problem. The provisions in

HB 526 to establish a rural, mobile daycare and respite program would provide support to New

Mexico’s rural families impacted by Alzheimer’s or other dementias.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The DOH believes persons with Alzheimer’s or other dementias, their families and caregivers,

will continue to be underserved.

POSSIBLE QUESTIONS

How will the mobile respite services be rendered.

AHO/lg:yr